Please complete the Problem as follows from the Text:

Remember when doing NPV & IRR, use my in$-$class assignment as a guide and utilize the PVA table.

This will be different than Chapter $11,$ but will save you time.

Here is another NPV decision. See my hints on EX $5$ to help. Use the $4$ steps.

Archer Foods has a freezer that is in need of repair and is considering whether to replace the old freezer with a new freezer or have the old freezer extensively repaired. Information about the two alternatives follows. Management requires a $10\%$ rate of return on its investments.

Alternative $1$: Keep the old freezer and have it repaired. If the old freezer is repaired, it will be kept for another $8$ years and then sold for its salvage value.

$\backslash$table$[[$Cost of old freezer,$$5,000],[$Cost of repair,$53,000],[$Annual expected revenues generatt,$64,000],[$Annual cash operating costs after re$,54,500],[$Salvage value of old freezer in $8$ yes,$3,000]]$

Alternative $2$: Sell the old freezer and buy a new one. The new freezer is larger than the old one and will allow the company to expand its product offerings, thereby generating more revenues. Also, it is more efficient and will yield substantial operating cost savings.

$\backslash$table$[[$Cost of new freezer,$$50,000$